Thursday, February 14, 2008

With all the questions concerning the tax stimulus checks, I thought it might be real handy to have a simple table to determine your check amount. No formulas or calculators needed - just a table.

Two tables are provided, one for single and another for joint tax filers. The first column is Adjusted Gross Income or AGI. Scroll down to find your estimated AGI, then move across based on the number of kids you claim as tax deductions. The number at that intersection is the amount of your estimated tax stimulus check.

Some of the questions I have overheard about the stimulus:

1) What's AGI? AGI is Adjusted Gross Income. For 1040EZ filers, it is the amount of your income that you will be taxed on before taking your standard deduction. It can be found on line 4 of 1040EZ.

For those who itemize and file 1040A forms, it is calculated by subracting deductions such as 401(k) contributions, IRA deductions, tuition and fees, moving expenses, etc from your gross income. You can find it on line 21 of your tax form. And on line 36 of form 1040.

2) Do pensions count towards AGI? Yes, pensions and even some social security income is included in AGI. Basically, any earned income that you have paid tax on, is included.

3) What about head of household? Is this a prebate on next years tax? These are good questions that have not yet been addressed.

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The contents of this website are provided for informational purposes only and should not be construed as advice. I am not a personal finance professional. Please discuss your specific needs with a qualified professional.